AGRICULTURAL INDUSTRY - WHOLESALE - RETAIL - MANUFACTURING

AGRICULTURAL INDUSTRY - WHOLESALE - RETAIL - MANUFACTURING

After 20 years meeting the needs of the industry and related sectors, it’s easy to see why this business has achieved growing year-on-year sales, generating revenues of $2.7 million last year for an average Gross Profit of 33.3% and an adjusted net return to the owners of over $450,000. Sales of the current year are up 11 percent on the same period last year.

UNIQUE – RECESSION RESISTANT

This is a simple-to-operate business whose products are always in demand by a statewide market which is consistently buoyant no matter what the economic conditions. As a result, it produces healthy revenues and profits, both of which have been growing each year steadily.

Key Features:

• Established in 1996.
• Outstanding reputation in the market.
• Quality conscious repeat clients.
• A high percentage of referrals.
• Low level, well-trained staff.
• Consistent demand for its products.
• Very large market.
• Sheltered from an economic downturn.
• High values and service culture.
• One-stop-shop approach.
• Clean accounts, very few add-backs.
• Owners are retiring.

ESTABLISHED SINCE 1996
The business has been supplying a wide range of popular brands of parts and equipment for 20 years and has developed an enviable reputation for its quality products, services, reliability and professionalism. A large amount of new work is generated by repeat customers and word of mouth.CONSISTENT UPWARD MARKET TREND
Due to this broad customer demographic and the vast geographic region which the business supplies all areas of Western Australia with occasional interstate clients, it means there is always one market sector or another actively using its products.

WELL ESTABLISHED MARKET LEADER
Over the years the customer base has grown as the business has expanded from not only supplying one sector of the industry but a broader base of end users seeking a more specialized service.

WELL TRAINED MULTI SKILLED STAFF
All the full-time staff can handle most general jobs such as invoicing and dispatch work. The business has operated for two decades – with the owners carefully planning their retirement over the past few years – so the company can almost “run itself”, with carefully chosen and well-trained staff.

OUTSTANDING REPUTATION
The company strives to be perceived as offering the best quality products and value for money, with an understanding of customers’ requirements and the need for timely supply. The business is a leading supplier, specialising in providing a “one-stop-shop” experience, with a large stock of parts on hand and fast despatch to minimise downtime.

A LONG-ESTABLISHED AND SECURE CLIENT BASE
Most clients represent less than one percent of total turnover – top ten clients represent only 23% of total revenue, and that includes 5.7% cash sales. The single biggest client represents just 4.4 per cent of sales revenue. The business has over 6,500 clients on its books. It is not reliant on agencies or a few large customers, thus offering excellent stability.

EXCLUSIVE PRODUCTS & SUPPLY AGREEMENTS
The business has a wide range of long-term suppliers and has agreements with some of them to exclusively represent their product lines in Western Australia. All its suppliers view this business as a vital seller of their product ranges.

LOW STAFF NUMBERS
The business employs only four full time, one casual staff and one on a contract basis. This is considered low for a company with this level of revenue.

HIGH BARRIER TO MARKET ENTRY
A business such as this is not established overnight, finding skilled and experienced staff and building a reliable reputation for winning the confidence of quality clients and supplier is a significant barrier to entry into this market.

VERY CLEAN ACCOUNTS
A complete set of clean and verified accounts are available, with very few add-backs, which clearly show sales and profitability.

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